Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the completion of the sale of a 12,750-square-foot multi-tenant retail center anchored by Dollar General in Inglewood, California. The sale price was $4.15 million.
Hanley Investment Group’s Executive Vice Presidents Kevin Fryman and Carlos Lopez, along with Vice Presidents Sean Cox and Alexander Moore, represented the seller, a private investor based in Los Angeles. The buyer, a private 1031 exchange investor from Los Angeles, was represented by Robert Toofer of Exclusive Realty of Los Angeles.
“We procured a private all-cash 1031 exchange buyer acquiring their first shopping center,” Fryman explained. “We negotiated a 16-day due diligence period and a 30-day escrow to provide surety of closing to the seller.”
Built in 1961 and remodeled in 2004, the Dollar General Center sits on 0.68 acres at 1000 South La Brea Avenue in Inglewood, directly across the street from El Super Fresh market. In addition to Dollar General, the fully occupied center features a variety of internet-resistant tenants, including a medical clinic, tax services, hair salon, financial services and an ice cream and dessert shop.
Dollar General, a tenant since 2012, occupies 70% of the shopping center’s square footage. All tenants have been at the center since 2015 or earlier. The property is strategically located near SoFi Stadium (home of the Los Angeles Rams and Chargers), Hollywood Park (one of the largest mixed-use developments on the West Coast, including creative office space, retail, entertainment venue, hotel, and up to 2,500 new residences), Intuit Dome (home of the Los Angeles Clippers starting in 2024), and the Kia Forum (a 17,000-seat music and entertainment venue).
“Inflation is driving middle-income shoppers to Dollar General for essentials and discretionary items,” noted Fryman. “According to Placer.ai, the Dollar General at the Inglewood property is ranked in the top 2% of Dollar Generals in the nation and in the top 6% in California. The closest Dollar General store is 30 miles away.”
Fryman highlights that the center’s strategic edge is that none of the shop tenants occupy spaces larger than 1,000 square feet, even with the center fully leased. “Having shop spaces less than 1,000 square feet presents several advantages. Smaller shops are more affordable to rent and maintain, which can be beneficial for small business owners. They also provide more flexibility in terms of layout and design, allowing for more creative and unique storefronts. Additionally, smaller shops can attract more foot traffic and create a sense of community within the shopping center, leading to increased sales and customer loyalty,” Fryman explained.
Founded in 1939, Dollar General Corporation (NYSE: DG), as of August 4, 2023, operates 19,488 Dollar General, DG Market, DGX and popshelf stores across the United States and Mi Súper Dollar General stores in Mexico. These stores provide everyday essentials, including food, health and wellness products, cleaning and laundry supplies, self-care and beauty items, and seasonal décor from its high-quality private brands alongside many of the world’s most trusted brands such as Coca-Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars, Nestlé, Procter & Gamble and Unilever.
“Today’s challenging economic climate hasn’t dimmed the allure of well-located multi-tenant retail assets,” said Fryman. “The demand for income-producing retail investment assets that have a mix of long-term, internet-resistant tenants underscores the sector’s strength.”